After determining the revenue needs for 2024-25, the Oil and Gas Regulatory Authority (Ogra) proposed reducing gas prices for Sui Northern and Southern gas companies on Tuesday.
Contrary to the companies’ demands, Ogra suggested a 10% cut in Sui Northern Gas Pipelines Limited (SNGPL) prices and a 4% cut for Sui Southern Gas Company (SSGC).
Ogra proposed lowering SNGPL gas prices by Rs179.17 per metric million British thermal units (MMBtu) to Rs1,635.90 per MMBtu. For SSGC, it suggested a cut of Rs59.23 per mmbtu to Rs1,401.25 per mmbtu.
According to the regulatory authority’s spokesperson, Ogra has sent this decision to the federal government for approval.
SNGPL requested that Ogra increase gas prices by 147% on March 18. The utility company wanted an increase of Rs2,646.18 per MMBtu and a new average gas price of Rs4,446.89 per MMBtu.
Facing a revenue shortfall of Rs189.18 billion, SNGPL wanted the higher price from July 1.
SSGC had also asked for a price hike of Rs274.40 per MMBtu. On March 17, SSGC requested Ogra to raise prices from July 2024, following an IMF demand.
The caretaker government approved a 67% natural gas tariff increase effective February 1 to meet the IMF’s criteria by February 15, 2024. With a revenue shortfall of Rs79.63 billion, SSGC urged Ogra to set the average gas price at Rs1,740.80 per MMBtu.
